Virgin America Reports 2009 2Qt

[Grandpa +65]

http://us.rd.yahoo.com/finance/news/prnews/SIG=112sle93o/*http://www.prnewswire.com/yahoo/ Virgin America Reports 2009 Second Quarter Financial Results

Start-up Domestic Airline Reports Year-Over-Year Growth, Versus Industry Declines

• Press Release
• Source: Virgin America
• On Thursday August 27, 2009, 9:00 am

SAN FRANCISCO, Aug. 27 /PRNewswire/ -- Virgin America, the award-winning start-up airline, today reported its financial results for the second quarter of 2009. Despite double-digit industry revenue decreases, the new carrier reported significantly improved financial results and unit costs, record-setting load factors and steady year-over-year growth in stage length-adjusted guest unit revenue.

"Given double digit year-over-year industry revenue declines and a 48 percent increase in our capacity, we're particularly pleased to report stage-length adjusted unit revenue growth and record-setting load factors in the second quarter," said Virgin America President and CEO David Cush. "As we continue to grow to new destinations in 2009 and beyond, our business model is right on track. We're confident that our low fares, award-winning service and high-tech amenities continue to provide an unrivalled value proposition at a time when consumers are more discerning than ever."
Second Quarter Reporting Highlights:

• Operating results: The airline reported an $11.4 million operating loss on revenues of $135.9 million - an 81.6 percent improvement year-over-year.
• Growing load factors: The airline reported an 85.3 percent overall load factor in 2Q09 - an 8 point improvement over 2Q08, despite a 42.9 percent increase in scheduled service capacity. Traffic increased by 57 percent year-over-year. The airline reported the highest loads in its history, with an 85.1 percent load factor in April; 84.1 percent load factor in May; and 86.6 percent load factor in June.
• Significant top line progress: Revenue in 2Q09 was up by 46.9 percent versus 2Q08. Virgin America's stage-length adjusted guest unit revenue was up 2.7 percent versus 2Q08.
• Exceptional cost control: Unit costs (CASM) dropped by 35.6 percent while non-fuel CASM dropped by 20.9 percent, as the airline was able to increase capacity at a very low marginal cost.
• Cash: The airline ended 2Q09 with $28 million in unrestricted cash and $54 million in total liquidity, with full funding for its operation through its projected profitability date.

 

[firstthird]

how are they still operating with no US investors? anyone know how they are getting around the 25% max foreign investor rule?

 

[LoveGun]

VA's CASM goes down with expansion and revenue went up. Sounds like an aircraft order is in their future.

 

[FADEC]

VA's CASM goes down with expansion and revenue went up. Sounds like an aircraft order is in their future.

$28 million cash in hand doesn't sound very healthy going into the quiet season. I doubt there will be much growth let alone aircraft orders

 

[Splert]

Press Release

• Source: Virgin America
• On Thursday August 27, 2009,
• Second Quarter Reporting Highlights:

• Operating results: The airline reported an $11.4 million operating loss on revenues of $135.9 million - an 81.6 percent improvement year-over-year.

VA did not report net income.

Operating loss does not include interest expense (on the jets) which in VA's case would result in a larger and deeper net loss. Unless of course they paid cash for the aeroplanes.

VA's PR department is reporting its loss in the best light possible.

Corporate PR at it's finest.

 

[ualdriver]

[/LIST]
VA did not report net income.

Operating loss does not include interest expense (on the jets) which in VA's case would result in a larger and deeper net loss. Unless of course they paid cash for the aeroplanes.

VA's PR department is reporting its loss in the best light possible.

Corporate PR at it's finest.

No, they reported it. Net income of (15.8M). That number includes some non-cash stuff like depreciation and interest expense like you mentioned.

 

[Splert]

No, they reported it. Net income of (15.8M). That number includes some non-cash stuff like depreciation and interest expense like you mentioned.

You are right.

I should have went to the VA website first and read the ENTIRE press release.

 

[front9]

Thats cause you and other h8ters are all the same...dont read sh!t, just respond emotionally. I remember when Jetwho got the same sh!t from you h8ters when they first started up. 10 years ago, aholes like Specker and Ualiar would bash Jetwho for bringing down the industry and lowering wages. Now look where they are. I remember a time when this website used to be about getting guys hired and networking. I miss the good times...

 

[Splert]

What's a hater CA Bitter Pants or are you CA Drunk Poster?

VA bullet pointed the OM not the NI.

That was done for a reason.

I wish everone in aviation well.

There is more to life than positive rate gear up. Grow up and stop drinking and posting.

 

[ualdriver]

That semi-coherent post a couple above mine was probably meant more for UAliar.......uh.......I mean me. As most on flightinfo know, I mostly post lies, hence the cute play on words....And for the record, I still think VA sucks and is killing a reasonable opportunity for airlines like mine, SWA, JBLU, etc, to raise fares in the Bay area (OAK, SFO, SJC traffic). Every market they enter is a new fare war the industry doesn't need. Every new market is more seats in a city-pair that probably doesn't need more seats or siphons off traffic from a neighboring city-pair. All partially and happily subsidized by, well.......

 

[johnsonrod]

It all comes down to cash flow. No cash = no operation. Are they cash flow positive or negative? If negative then they are eating away at any equity left over from investors because banks will likely not lend to them.

How are they covering their cash obligations????

 

[Sailpilot]

Thats cause you and other h8ters are all the same...dont read sh!t, just respond emotionally. I remember when Jetwho got the same sh!t from you h8ters when they first started up. 10 years ago, aholes like Specker and Ualiar would bash Jetwho for bringing down the industry and lowering wages. Now look where they are. I remember a time when this website used to be about getting guys hired and networking. I miss the good times...

As a Jetblue Pilot: Specker and Ualair were right.

"Where they are": Still at the bottom and only benefiting from the advances of Union pilots and there CBA's paid for by their dues.

Just keeping it real....

 

[front9]

As a Jetblue Pilot: Specker and Ualair were right.

"Where they are": Still at the bottom and only benefiting from the advances of Union pilots and there CBA's paid for by their dues.

Just keeping it real....

Are you talking about how Jetblue got started 10 years ago? And you say this cause you are now union and paying dues right?

 

[clickclickboom]

From another JB pilot:


I dont blame jetblue for the loss of pay and benefits that the legacies encountered after 9/11 But let me say that jetblue has been instrumental in continuing to kick the other pilot groups while they were down.

9/11 was/is the only reason that jb was able to build critical mass and now they are a viable long term airline that JUST now is starting to raise compensation and benefit levels to average. I can only hope that the trend continues with other airlines.

JB SHOULD have been the last bottom feeder airline to survive airlines like va financed by back door deals and billionaire promises should not be flying in our skies.

 

[front9]

That semi-coherent post a couple above mine was probably meant more for UAliar.......uh.......I mean me. As most on flightinfo know, I mostly post lies, hence the cute play on words....

I dont have to capitalize the A in UA, they know who you are...

And for the record, I still think VA sucks and is killing a reasonable opportunity for airlines like mine, SWA, JBLU, etc, to raise fares in the Bay area (OAK, SFO, SJC traffic).

Talk about posting when drunk, you're saying its VA's fault your airline cannot raise fares??? Lets just throw out the economy, scope or lack of, Tilton etc etc etc as factors of your demise...its all VA's fault.

Every market they enter is a new fare war the industry doesn't need. Every new market is more seats in a city-pair that probably doesn't need more seats or siphons off traffic from a neighboring city-pair. All partially and happily subsidized by, well.......

You mean the fare war WN creates when entering a new market or when Jwho copies whatever city pair VA announces. Look junior, bottom line is you sound like a certain Iranian dictator who blames the U.S. for every problem HE has in his country. Its everybodys fault but our own. I saw the writing on the wall 12 years ago or so when a certain exec from UA said "we are not a cargo carrier" and shut down a profitable DC10 operation. I got off when everybody else was trying to jump on the titanic. Cya